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The Legacy began with both a 5 door wagon and 4 door sedan body styles being offered with FWD and an optional AWD package. The Subaru Legacy itself is a mid-size car introduced by the Japanese manufacturer Subaru in February 1989. It was created as a larger, more upscale companion to the company's Leone. The Legacy showcased a newly designed engine to replace the aging EA series. It was named the new EJ series. When it debuted in the United States, the only major difference between the original concept car was it featured a larger displacing 2.2 liter engine. In Japan, a turbocharged Legacy GT was launched in 1989, and was then was followed in 1991 by the introduction in the United States of a Sport trim of the sedan. However, this was dropped and the LE Wagon in 1992 was instead offered with a turbo configuration. An all-wheel drive system was also offered.

In the Australian market, it instead bears the name Liberty, which it was called out of respect for Australia's Legacy organization, which aids veterans and their families during and after wars. It would have been a PR nightmare to explain that one had they not caught the potential confusion early. The second-generation sales in Japan began with model year 1993, and in 1995 the second-generation sales began in North America. This included a full body & chassis revision. Prior to this, Subaru sales had been declining in the North American market. With the help of some clever marketing, a trim level called the Outback was launched. Its popularity would eventually lead to the development of the Outback as a stand alone model rather than a trim level. Further, in North America, the early sporty models were known simply as the Sport Sedan and the Touring Wagon.